SINGAPORE – Keppel Capital, the asset management arm of Keppel Corp, has secured an aggregate of US$600 million ($815.2 million) in separate managed accounts (SMA) from international financial institutions.
The SMAs focus on global infrastructure projects with “long-term utility-like contracted cash flows”, the firm said on Tuesday (July 27).
The SMAs were put together by leveraging on Keppel Corp’s expertise and network in renewables, decarbonisation solutions, energy and infrastructure, which are Keppel’s focus areas under its long term Vision 2030 transformation plan.
Keppel Capital chief executive Chistina Tan said the firm is well positioned to collaborate with and harness synergies from Keppel Corp’s sister entities such as Keppel Asia Infrastructure Fund and Keppel Infrastructure Fund Management.
The move comes as Keppel Capital is seeing an increasing appetite for infrastructure investments, which are often viewed as an attractive asset class with long term stable cash flows. SMAs are “less susceptible to major economic cycles, short term fluctuations and provides sustainable, stable and predictable income streams”, it said.
Keppel Capital had assets under management of approximately $37 billion as at end-2020, including in real estate, infrastructure and data centre assets in key global markets.
The firm aims to create value and deliver sustainable returns for institutional and retail investors through a range of products like listed real estate investment trusts, business trusts, private funds SMAs and pooled investment vehicles.
Tuesday’s developments are not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corp, which announces its results for the first half of the year on Thursday.
Last month, Keppel Corp announced a non-binding agreement to merge its offshore and marine arm with Sembcorp Marine following an extended period of low oil prices and persistent disruptions in the oil and gas sector.
Shares of Keppel Corp were trading at $5.28 as of 10.12am on Tuesday, up three cents, or 0.6 per cent, from the previous close.